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The case presents a financing dilemma at a fast growing, Brazilian construction company. The growing demand for residential and commercial real estate in Brazil, coupled with the capital intensive nature of the industry generates the need for a considerable external financing. The students are invited to take the perspective of the financial manager and evaluate three financing alternatives – an issue of debentures, a seasoned equity offering, and a capital-raising ADR offering. In their evaluation and final recommendation students need to consider the implications of each of the financing alternatives on firm value, equity risk, cost of capital, financial leverage, issuance costs, and ownership structure. The case also presents a valuable opportunity to discuss the interdependence between the institutional development of an economy and the development of its capital markets.

After early successes in a very selective management-training program, Daniel Oliveira, a young manager for Brazilian fashion chain Clothes & Accessories, is thrown into the deep end of the pool by being reassigned to a region lagging in sales. Early on, Oliveira discovers that his store, located in mid-sized Vitória in southeastern Brazil, is in trouble. As soon as he tries to make changes, however, he meets with resistance from long-term employees. The case details his pitfalls and growing awareness of the complexities of leading a diverse workforce and managing change.

• Analyze and discuss the process for leading change with people in mind and understand how different tools could be applied in real life situations

• Discuss the manager’s role in a turnaround process and common mistakes made by inexperienced managers

• Weigh the risks and consequences of different talent management (or leadership development) strategies

• Grasp the importance of building effective teams and fostering buy-in to succeed in a leadership position

Analyze and discuss the process for leading change with people in mind and understand how different tools could be applied in real life situations

Discuss the manager’s role in a turnaround process and common mistakes made by inexperienced managers

Weigh the risks and consequences of different talent management (or leadership development) strategies

Grasp the importance of building effective teams and fostering buy-in to succeed in a leadership position